Stocks were closed mixed on Friday and finished with a weekly gain. 8th straight session gain for Dow and while S&P snaps three days win streak. Nasdaq also ended the day lower but all the three major indices posted weekly advances for a third straight week.
ECB cut rates for the first time since 2016 and also announced it would be relaunching a quantitative easing program to help shore up the flagging eurozone economy. After the news on Thursday U.S. Treasury yields continued to march higher, with the 10-year yield recovering from a three-year low of 1.43% reached earlier this month to rise above 1.90%.
The Commerce Department reported a broad measure of retail sales rose 0.4% at a greater-than-expected rate in August on Friday, driven by sales from internet retailers, building materials sellers and auto dealers. But excluding autos and gas sales, retail sales rose just 0.1% for the month, missing expectations which were 0.2% and coming off a 0.9% increase in July. Excluding motor vehicles and parts sales alone, retail sales were flat for the month, versus a 0.1% increase expected and a 1.0% gain in July.
According to the preliminary results from the University of Michigan’s closely watched monthly Survey of Consumers, where the sentiment also improved in September after a sharp drop-off in August in this sector. The sentiments rose to 92.0 for the month which was 89.8 on last month. The Chinese government is encouraging companies to buy “a certain amount” of U.S. farm products including pork and soybeans and will exempt these goods from additional tariffs, such a move would provide some respite to U.S. farmers, who have become one of the biggest casualties in the trade war with China.
Investors are resigned to a bleak Wall Street opening Monday after U.S. stock futures on all three major indices plunged Sunday night. This drop came after a surge in oil prices following Saturday's shattering aerial drone attacks on two of Saudi Arabia's main oil refining and production installations. European stock markets fell on Monday as traders reacted to the news of the attack that took half of Saudi Arabia’s oil output offline, sending oil producers much higher while airlines struggled.
Dow Jones Industrial Average futures slid more than 150 points or S&P 500 futures and Nasdaq Composite futures also fell 0.47% and 0.76% respectively.
Saudi officials said Sunday they expect to regain about one-third of that output capacity by Monday, but experts said it may take weeks for production to return to normal levels. The Saudi oil disruption is weighing on equities just as they were getting back into rally mood. It would be the first decline in nine days for the DJIA, which had climbed back to within 1% from a record on Friday. No doubt that the attack was a “big deal” and could cause a major spike in oil prices because of its disruption to global supplies.